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Monster Beverage

Nasdaq:MNST
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MNST
Nasdaq
$33B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages and concentrates in the United States and internationally. The last earnings update was 43 days ago. More info.


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MNST Share Price and Events
7 Day Returns
-7%
NasdaqGS:MNST
-0.4%
US Beverage
0.5%
US Market
1 Year Returns
8.7%
NasdaqGS:MNST
11.8%
US Beverage
0.8%
US Market
MNST Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Monster Beverage (MNST) -7% -4.1% 1.8% 8.7% 18% 153.1%
US Beverage -0.4% 1.5% 9.6% 11.8% 10.1% 13.1%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • MNST underperformed the Beverage industry which returned 11.8% over the past year.
  • MNST outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
MNST
Industry
5yr Volatility vs Market

Value

 Is Monster Beverage undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Monster Beverage to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Monster Beverage.

NasdaqGS:MNST Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MNST
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.58
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.584 (1 + (1- 21%) (0.07%))
0.721
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:MNST using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Monster Beverage is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MNST DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 1,149.35 Analyst x6 1,069.18
2020 1,245.14 Analyst x7 1,077.50
2021 1,354.60 Analyst x4 1,090.46
2022 1,445.59 Est @ 6.72% 1,082.54
2023 1,525.41 Est @ 5.52% 1,062.63
2024 1,596.85 Est @ 4.68% 1,034.81
2025 1,662.29 Est @ 4.1% 1,002.08
2026 1,723.58 Est @ 3.69% 966.56
2027 1,782.19 Est @ 3.4% 929.71
2028 1,839.20 Est @ 3.2% 892.53
Present value of next 10 years cash flows $10,208.03
NasdaqGS:MNST DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,839.20 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$39,626.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $39,626.89 ÷ (1 + 7.5%)10
$19,230.30
NasdaqGS:MNST Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,208.03 + $19,230.30
$29,438.33
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $29,438.33 / 543.58
$54.16
NasdaqGS:MNST Discount to Share Price
Calculation Result
Value per share (USD) From above. $54.16
Current discount Discount to share price of $61.33
= -1 x ($61.33 - $54.16) / $54.16
-13.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Monster Beverage is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Monster Beverage's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Monster Beverage's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MNST PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.88
NasdaqGS:MNST Share Price ** NasdaqGS (2019-06-14) in USD $61.33
United States of America Beverage Industry PE Ratio Median Figure of 15 Publicly-Listed Beverage Companies 31.18x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Monster Beverage.

NasdaqGS:MNST PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MNST Share Price ÷ EPS (both in USD)

= 61.33 ÷ 1.88

32.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Monster Beverage is overvalued based on earnings compared to the US Beverage industry average.
  • Monster Beverage is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Monster Beverage's expected growth come at a high price?
Raw Data
NasdaqGS:MNST PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
8.1%per year
United States of America Beverage Industry PEG Ratio Median Figure of 12 Publicly-Listed Beverage Companies 2.49x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:MNST PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.56x ÷ 8.1%

4.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Monster Beverage is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Monster Beverage's assets?
Raw Data
NasdaqGS:MNST PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.80
NasdaqGS:MNST Share Price * NasdaqGS (2019-06-14) in USD $61.33
United States of America Beverage Industry PB Ratio Median Figure of 28 Publicly-Listed Beverage Companies 5.99x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:MNST PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MNST Share Price ÷ Book Value per Share (both in USD)

= 61.33 ÷ 6.80

9.01x

* Primary Listing of Monster Beverage.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Monster Beverage is overvalued based on assets compared to the US Beverage industry average.
X
Value checks
We assess Monster Beverage's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Monster Beverage has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Monster Beverage expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Monster Beverage expected to grow at an attractive rate?
  • Monster Beverage's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Monster Beverage's earnings growth is positive but not above the United States of America market average.
  • Monster Beverage's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MNST Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MNST Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 8.1%
NasdaqGS:MNST Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 8.8%
United States of America Beverage Industry Earnings Growth Rate Market Cap Weighted Average 6.5%
United States of America Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MNST Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MNST Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,999 1,451 1,314 9
2020-12-31 4,627 1,328 1,223 18
2019-12-31 4,225 1,217 1,129 18
NasdaqGS:MNST Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,902 1,136 1,038
2018-12-31 3,807 1,162 993
2018-09-30 3,693 1,019 955
2018-06-30 3,587 956 906
2018-03-31 3,478 944 859
2017-12-31 3,369 988 821
2017-09-30 3,312 1,071 792
2017-06-30 3,191 987 765
2017-03-31 3,111 785 727
2016-12-31 3,049 701 713
2016-09-30 2,941 592 678
2016-06-30 2,910 609 661

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Monster Beverage's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • Monster Beverage's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MNST Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Monster Beverage Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MNST Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.48 2.67 2.30 2.00
2020-12-31 2.30 2.42 2.12 8.00
2019-12-31 2.06 2.15 1.99 8.00
NasdaqGS:MNST Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.88
2018-12-31 1.78
2018-09-30 1.70
2018-06-30 1.61
2018-03-31 1.52
2017-12-31 1.45
2017-09-30 1.40
2017-06-30 1.35
2017-03-31 1.26
2016-12-31 1.21
2016-09-30 1.13
2016-06-30 1.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Monster Beverage is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Monster Beverage's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Monster Beverage has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Monster Beverage performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Monster Beverage's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Monster Beverage's year on year earnings growth rate has been positive over the past 5 years.
  • Monster Beverage's 1-year earnings growth exceeds its 5-year average (20.9% vs 19.4%)
  • Monster Beverage's earnings growth has exceeded the US Beverage industry average in the past year (20.9% vs 6.2%).
Earnings and Revenue History
Monster Beverage's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Monster Beverage Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MNST Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,902.25 1,038.44 1,008.19
2018-12-31 3,807.18 993.00 985.16
2018-09-30 3,693.31 955.22 976.45
2018-06-30 3,586.62 906.23 959.00
2018-03-31 3,477.82 858.75 935.13
2017-12-31 3,369.05 820.68 903.50
2017-09-30 3,312.46 792.30 860.50
2017-06-30 3,190.93 765.20 831.87
2017-03-31 3,111.35 726.79 802.60
2016-12-31 3,049.39 712.69 776.86
2016-09-30 2,941.06 678.48 748.38
2016-06-30 2,909.73 661.41 711.75
2016-03-31 2,775.96 706.20 673.86
2015-12-31 2,722.56 546.73 660.62
2015-09-30 2,682.70 533.32 626.02
2015-06-30 2,562.05 480.35 606.05
2015-03-31 2,555.53 392.35 603.92
2014-12-31 2,464.87 483.19 587.64
2014-09-30 2,400.15 433.96 584.85
2014-06-30 2,354.60 404.55 576.78
2014-03-31 2,298.33 370.42 588.25
2013-12-31 2,246.43 338.66 586.76
2013-09-30 2,177.10 330.54 588.32
2013-06-30 2,128.62 324.49 577.38
2013-03-31 2,090.32 327.42 539.18
2012-12-31 2,060.70 340.02 513.53
2012-09-30 1,999.14 336.57 495.27
2012-06-30 1,931.91 332.82 481.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Monster Beverage has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Monster Beverage used its assets more efficiently than the US Beverage industry average last year based on Return on Assets.
  • Monster Beverage has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Monster Beverage's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Monster Beverage has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Monster Beverage's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Monster Beverage's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Monster Beverage is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Monster Beverage's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Monster Beverage's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5.3685722308023E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Monster Beverage Company Filings, last reported 2 months ago.

NasdaqGS:MNST Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,698.82 22.11 882.04
2018-12-31 3,610.90 0.00 958.16
2018-09-30 3,893.27 0.00 1,171.61
2018-06-30 3,605.16 0.00 870.78
2018-03-31 3,875.61 0.00 1,096.58
2017-12-31 3,895.21 0.00 1,201.56
2017-09-30 3,768.15 0.00 1,095.91
2017-06-30 3,776.02 0.00 1,101.51
2017-03-31 3,530.23 1.41 785.70
2016-12-31 3,329.71 0.00 598.14
2016-09-30 3,398.40 1.31 599.18
2016-06-30 3,192.41 0.00 479.09
2016-03-31 4,991.85 0.00 3,036.35
2015-12-31 4,809.41 0.80 2,920.03
2015-09-30 4,654.56 0.00 2,785.43
2015-06-30 4,854.82 0.00 2,931.15
2015-03-31 1,468.35 0.00 1,010.07
2014-12-31 1,515.15 0.00 1,151.46
2014-09-30 1,386.44 0.00 996.36
2014-06-30 1,255.63 0.00 827.02
2014-03-31 1,102.73 0.00 750.95
2013-12-31 992.28 0.00 613.60
2013-09-30 960.39 0.00 602.59
2013-06-30 856.02 0.00 432.04
2013-03-31 701.37 0.00 344.67
2012-12-31 644.40 0.00 319.56
2012-09-30 889.68 0.00 590.71
2012-06-30 1,187.93 0.00 870.23
  • Monster Beverage's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0% vs 0% today).
  • Debt is well covered by operating cash flow (3.1985859338478E+19%, greater than 20% of total debt).
  • Monster Beverage earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Monster Beverage's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Monster Beverage has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Monster Beverage's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Monster Beverage dividends. Estimated to be 0% next year.
If you bought $2,000 of Monster Beverage shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Monster Beverage's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Monster Beverage's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MNST Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Beverage Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MNST Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 6.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Monster Beverage has not reported any payouts.
  • Unable to verify if Monster Beverage's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Monster Beverage's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Monster Beverage has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Monster Beverage's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Monster Beverage's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Monster Beverage afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Monster Beverage has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Monster Beverage's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rodney Sacks
COMPENSATION $13,914,931
AGE 68
TENURE AS CEO 28.6 years
CEO Bio

Mr. Rodney Cyril Sacks, H.Dip.Law, H.Dip.Tax has been the Chairman and Chief Executive Officer of Monster Beverage Corporation (formerly, Hansen Natural Corporation) since November 1990. Mr. Sacks serves as a Co-Owner at Hilrod Holding Xvi, L.P. He served as the Chief Financial Officer of Hansen Natural Corp. from November 1990 to July 1996. Mr. Sacks has been the Chairman of Hansen Beverage Company ('HBC') of Hansen Natural Corporation since June 1992. He serves as an Independent Non-Executive Director of Comair Ltd.

CEO Compensation
  • Rodney's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rodney's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Monster Beverage management team in years:

14.8
Average Tenure
64
Average Age
  • The average tenure for the Monster Beverage management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Rodney Sacks

TITLE
Chairman & CEO
COMPENSATION
$14M
AGE
68
TENURE
28.6 yrs

Hilton Schlosberg

TITLE
Vice Chairman
COMPENSATION
$14M
AGE
65
TENURE
28.6 yrs

Thomas Kelly

TITLE
Executive VP of Finance
COMPENSATION
$2M
AGE
64

Guy Carling

TITLE
President of EMEA
COMPENSATION
$3M
AGE
41
TENURE
0.9 yrs

Emelie Tirre

TITLE
President of the Americas
COMPENSATION
$3M
AGE
48
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Monster Beverage board of directors in years:

14.8
Average Tenure
65.5
Average Age
  • The average tenure for the Monster Beverage board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Hilton Schlosberg

TITLE
Vice Chairman
COMPENSATION
$14M
AGE
65
TENURE
28.6 yrs

Sydney Selati

TITLE
Independent Director
COMPENSATION
$267K
AGE
79
TENURE
14.8 yrs

Rodney Sacks

TITLE
Chairman & CEO
COMPENSATION
$14M
AGE
68
TENURE
28.6 yrs

Mark Vidergauz

TITLE
Lead Independent Director
COMPENSATION
$252K
AGE
65
TENURE
5.3 yrs

Benjamin Polk

TITLE
Independent Director
COMPENSATION
$225K
AGE
67
TENURE
28.6 yrs

Mark Hall

TITLE
Director
COMPENSATION
$2M
AGE
63
TENURE
5.4 yrs

Gary Fayard

TITLE
Independent Director
COMPENSATION
$235K
AGE
66
TENURE
4 yrs

Jeanne Jackson

TITLE
Director
AGE
66

Kathleen Ciaramello

TITLE
Director
AGE
54

Steven Pizula

TITLE
Director
AGE
62
Who owns this company?
Recent Insider Trading
  • Monster Beverage insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Sell Mark Hall Individual 07. May 19 07. May 19 -181,622 $61.45 $-11,160,672
06. Mar 19 Sell Sydney Selati Individual 05. Mar 19 05. Mar 19 -6,000 $63.44 $-380,640
06. Mar 19 Sell Mark Vidergauz Individual 04. Mar 19 04. Mar 19 -20,000 $62.25 $-1,245,000
04. Sep 18 Sell Emelie Tirre Individual 30. Aug 18 30. Aug 18 -17,000 $60.91 $-1,035,470
X
Management checks
We assess Monster Beverage's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Monster Beverage has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Monster Beverage Corporation (NASDAQ:MNST) Is A Financially Healthy Company

For MNST, the debt-to-equity ratio is zero, meaning that the company has no debt. … Given zero long-term debt on its balance sheet, Monster Beverage has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. … At the current liabilities level of US$631m, the company has been able to meet these obligations given the level of current assets of US$1.9b, with a current ratio of 3.02x.

Simply Wall St -

Why We Think Monster Beverage Corporation (NASDAQ:MNST) Could Be Worth Looking At

In the case of MNST, it is a company with great financial health as well as a a strong track record of performance. … NasdaqGS:MNST Income Statement, June 3rd 2019 Next Steps: For Monster Beverage, I've compiled three relevant aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for MNST’s future growth? … The intrinsic value infographic in our free research report helps visualize whether MNST is currently mispriced by the market.

Simply Wall St -

Estimating The Intrinsic Value Of Monster Beverage Corporation (NASDAQ:MNST)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Monster Beverage Corporation (NASDAQ:MNST) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.15k $1.24k $1.35k $1.45k $1.54k $1.61k $1.68k $1.75k $1.81k $1.86k Growth Rate Estimate Source Analyst x6 Analyst x7 Analyst x4 Est @ 7.19% Est @ 5.85% Est @ 4.92% Est @ 4.26% Est @ 3.8% Est @ 3.48% Est @ 3.26% Present Value ($, Millions) Discounted @ 7.5% $1.07k $1.07k $1.09k $1.09k $1.07k $1.05k $1.01k $978.73 $942.15 $904.96 Present Value of 10-year Cash Flow (PVCF)= $10.27b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.9b × (1 + 2.7%) ÷ (7.5% – 2.7%) = US$40b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$40b ÷ ( 1 + 7.5%)10 = $19.50b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $29.77b.

Simply Wall St -

Is Monster Beverage Corporation (NASDAQ:MNST) A High Quality Stock To Own?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Monster Beverage: 28% = US$1.0b ÷ US$3.7b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

If You Had Bought Monster Beverage (NASDAQ:MNST) Shares Five Years Ago You'd Have Made 163%

For example, the Monster Beverage Corporation (NASDAQ:MNST) share price has soared 163% in the last half decade. … View our latest analysis for Monster Beverage In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Over half a decade, Monster Beverage managed to grow its earnings per share at 21% a year.

Simply Wall St -

Monster Beverage Corporation (NASDAQ:MNST): What Are The Future Prospects?

Help shape the future of investing tools and you could win a $250 gift card! … In December 2018, Monster Beverage Corporation (NASDAQ:MNST) released its earnings update. … as a 9.9% rise in profits is expected in the upcoming year,

Simply Wall St -

Here's Why We Think Monster Beverage (NASDAQ:MNST) Is Well Worth Watching

How Quickly Is Monster Beverage Increasing Earnings Per Share. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … While Monster Beverage did well to grow revenue over the last year, EBIT margins were dampened at the same time.

Simply Wall St -

Monster Beverage Corporation (NASDAQ:MNST): Secrets For Long Term Investors

I'm talking about the well-proven, robust track record Monster Beverage Corporation. … Check out our latest analysis for Monster Beverage. … Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages and concentrates in the United States and internationally

Simply Wall St -

Where Monster Beverage Corporation (NASDAQ:MNST) Stands In Terms Of Earnings Growth Against Its Industry

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Did MNST beat its long-term earnings growth trend and its industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which MNST is growing has accelerated

Simply Wall St -

Is Monster Beverage Corporation (NASDAQ:MNST) Overpaying Its CEO?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … Our data indicates that Monster Beverage Corporation is worth US$29b, and total annual CEO compensation is US$13m. … While we always look at total compensation first, we note that the salary component is less, at US$750k.

Simply Wall St -

Company Info

Description

Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages and concentrates in the United States and internationally. It operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. The company offers ready-to-drink packaged energy drinks, carbonated energy drinks, non-carbonated dairy based coffee and energy drinks, non-carbonated energy shakes, and non-carbonated energy drinks primarily to bottlers and full service beverage distributors, as well as sells directly to retail grocery and specialty chains, wholesalers, club stores, drug stores, mass merchandisers, convenience chains, food service customers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. Monster Beverage Corporation sells its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster MAXX, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro, Caffé Monster, Predator, Live+, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play(stylized), Relentless, BPM, BU, Gladiator, Samurai, and Mutant brands The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.

Details
Name: Monster Beverage Corporation
MNST
Exchange: NasdaqGS
Founded: 1985
$33,337,528,100
543,576,196
Website: http://www.monsterbevcorp.com
Address: Monster Beverage Corporation
1 Monster Way,
Corona,
California, 92879,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MNST Common Shares Nasdaq Global Select US USD 06. Dec 1985
DB MOB Common Shares Deutsche Boerse AG DE EUR 06. Dec 1985
LSE 0K34 Common Shares London Stock Exchange GB USD 06. Dec 1985
WBAG MNST Common Shares Wiener Boerse AG AT EUR 06. Dec 1985
BMV MNST * Common Shares Bolsa Mexicana de Valores MX MXN 06. Dec 1985
Number of employees
Current staff
Staff numbers
2,748
Monster Beverage employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 23:38
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.